Health Industry Today articles from November 1997

Health Industry Today archives from November 1997

Mega-mergers test arguments for and against consolidation. (drug wholesale industry)(Industry Overview)
November 1, 1997... When the superpowers of the drug wholesale industry decided to use their stock as currency in an impressive one-two punch to buy up their closest competitors, the aftershocks quickly reached their smaller cousins in the medical-surgical supply...

Distributors feel the squeeze, but come to grips with changing market. (medical supply distributors)(Industry Overview)
November 1, 1997... Considering the state of flux in the health care supply community, the price pressures and the uncertainty, the mood on the floor of Chicago's Navy Pier convention center was surprisingly upbeat last month at the annual meeting of the Health...

Competition widens as Guidant wins early clearance for Multi-Link stent. (ACS Multi-Link)
November 1, 1997... With the early October clearance of the ACS Multi-Link[TM], the U.S. stent market gained another competitor that will likely push down the price and increase product choice of the tiny devices that have quickly risen in popularity with cardiac...

K-C to acquire mask-maker Tecnol. (Kimberly-Clark Corp.; Tecnol Medical Products Inc.)
November 1, 1997... Kimberly-Clark Corp. announced its first acquisition in the health care sector in early September when the Roswell, Ga.based manufacturer said it would purchase Tecnol Medical Products Inc., Fort Worth, Texas, for approximately $400 million in...

With money in the bank, KCI to be sold to two investment firms. (Kinetic Concepts Inc.; Richard C. Blum and Associates L.P. and Fremont Partners L.P.)
November 1, 1997... Capitalizing on a growing market share combined with a strong, debt-free cash position, Kinetic Concepts Inc. agreed to be acquired last month by a pair of investment concerns in a transaction valued at approximately $885 million. The San...

Mediation fails to find common ground in Adams-General Medical case. (lawsuit filed by Darrilyn Adams)
November 1, 1997... Meditation sessions broke down last month before reaching a compromise solution to the lawsuit filed by Darrilyn Adams, the former executive with General Medical Corp. The case, which is being watched closely by many medical-surgical supply...

Medline launches new film dressing. (Medline Industries Inc.'s Arglaes, a new antimicrobial film dressing)(Product Announcement)
November 1, 1997... Medline Industries Inc. is putting considerable time and energy into an educational effort in support of Arglaes, a new antimicrobial film dressing the company calls "a breakthrough in the fight against antibiotic resistant bacteria." The...

Health care exec pay surged in 1996. (chief executives)
November 1, 1997... With profits on the upswing in the medical segment - on both the provider side and the supplier side - among those benefiting most from the influx of dollars are the companies' chief executives. The seventh annual executive compensation survey...

Owens & Minor Inc. (CostTrack distribution agreement with Methodist Health Systems Inc.)
November 1, 1997... Owens & Minor Inc., Richmond, Va., signed a three-year, CostTrack distribution agreement with Methodist Health Systems, a 13-hospital integrated delivery network with more than 2,700 licensed beds based in Memphis, Tenn. The contract, which took...

Maxxim Medical Inc. (new three-year contract with AmeriNet covering surgical procedure trays)
November 1, 1997... Maxxim Medical Inc., Clearwater, Fla., signed a new, three-year agreement with St. Louis-based AmeriNet that covers custom procedure trays. Maxxim expects the contract will represent approximately $45 million over its term in sales to the 2,000...

Siemens Medical Systems Inc. (three-year contract with the Dept. of Veterans Affairs covering medical monitoring equipment)
November 1, 1997... Siemens Medical Systems Inc., Danvers, Mass., signed a three-year contract with the Dept. of Veterans Affairs that covers patient monitoring and cath lab recording systems.

Tidi Products Inc. (contract to supply VHA Inc. with exam paper products)
November 1, 1997... Tidi Products Inc., Troy, Mich., signed an agreement with VHA Inc., Irving, Texas, that covers exam paper products such as paper capes, gowns, drapes and bedside bags. The contract, aimed primarily at VHA's alternate site facilities, took effect...

Trex Medical Corp. (contract to supply BuyPower with mammography and minimally invasive breast-biopsy systems)
November 1, 1997... Trex Medical Corp., Danbury, Conn., signed a two-year agreement with Tenet Healthcare Corp., Santa Monica Calif., to supply BuyPower, the hospital chain's group purchasing program with mammography and minimally invasive breast-biopsy systems....

Graham-Field Health Products Inc. (three-year contract to supply VGM and Associates Inc. with manufactured and proprietary products)
November 1, 1997... Graham-Field Health Products Inc., Hauppauge, N.Y., signed a three-year agreement with VGM & Assoc., Inc., valued at approximately $65 million over its term. VGM, described as the nation's largest home medical equipment buying group, has been a...

Xomed Surgical Products Inc. (two-year contract with AmeriNet Inc.)
November 1, 1997... Xomed Surgical Products Inc., Jacksonville, Fla., signed a two-year corporate agreement with AmeriNet, St. Louis, that covers more than 4,000 Xomed products used by ear, nose and throat physicians.

Alternate Site Distributors. (two-year prime vendor agreement with Affiliated Physicians Network Inc.)
November 1, 1997... Alternate Site Distributors, an affiliate of Bergen Brunswig Corp., Orange, Calif., signed a two-year prime vendor agreement with Affiliated Physicians Network Inc., Fort Lee, N.J., valued at approximately $60 million over its term. Affiliated...

Code Alert. (contract with AmeriNet covering patient wandering and security systems)
November 1, 1997... Code Alert, Milwaukee, signed a new, three-year agreement with St. Louis-based AmeriNet that covers patient wandering and security systems. The contract, which took effect Oct. 1, includes products used in acute care, long-term care, head trauma,...

BioStar Inc. (three-year contract with AmeriNet Inc.)
November 1, 1997... BioStar Inc., Boulder, Colo., and Murex Diagnostics Inc., Norcross, Ga., were each awarded three-year contracts with St. Louis-based AmeriNet. The agreements, which took effect July 1, cover BioStar's rapid diagnostic tests. BioStar's 100-member...

Premier alliance names three corporate partners. (Bayer Health Care Partners, Boehringer Mannheim Corp. and 3M Health Care)
November 1, 1997... Three large manufacturers gained status as corporate partners with Premier Inc. when Bayer Health Care Partners, Orange, Conn.; Boehringer Mannheim Corp., Indianapolis, and 3M Health Care, St. Paul, Minn., each signed seven-year contracts with...

Today's IDN could be the El Nino of health care. (integrated delivery networks)
November 1, 1997... In a great many respects, integrated delivery networks are the E Nino of today's health care community. Reports fill the media that they seem to be gathering momentum out there somewhere, but their impact to date still appears Jify, at least from...

Tenet eases compliance strategy. (Tenet Healthcare Corp.)
November 1, 1997... Tenet Healthcare Corp. is scaling back the tough line on its hospitals' compliance to product contracts for lower cost items, says David Picker, vice president of resource management for the Santa Monica, Calif.based chain. Its new strategy for...

Did Columbia/HCA alienate suppliers with quid pro quo demands?
November 1, 1997... The future of Columbia/HCA has been jeopardized by allegations of misconduct, leaving it wide open to criticism from many quarters. Now, particularly from the losers in its myriad contract battles with the vendor community, it's not too...

Hospital Purchasing Service. (to shift its purchasing volume to HealthCare Purchasing Partners Inc.)
November 1, 1997... Hospital Purchasing Service, Grand Rapids, Mich., has voted to shift its $175 million in purchasing volume to HealthCare Purchasing Partners Inc., the wholly owned subsidiary of Irving, Texas-based VHA Inc. The agreement allows Hospital...

Cardinal Health Inc. (acquisition of Anesthesia Data Systems Inc.)
November 1, 1997... Cardinal Health Inc., Dublin, Ohio, has acquired Atlanta-based Anesthesia Data Systems Inc. (ADS), a company that collects anesthesia data and benchmarks performance for hospitals and anesthesia practice groups. ADS will be integrated with...

Varian Associates Inc. (plan to purchase General Electric Medical Systems' radiotherapy service and support operation)
November 1, 1997... Varian Associates Inc., Palo Alto, Calif., says it will purchase the radiotherapy service and support operation owned by Milwaukee-based General Electric Medical Systems. The agreement, which is expected to close around the end of the year,...

Concepts in Healthcare Inc. (launched Total Cost Management)
November 1, 1997... Concepts in Healthcare Inc., Ashland, Mass., has launched Total Cost Management, a new company that will work with integrated delivery network clients to develop customized programs and services that focus on a total cost management approach to...

Urohealth Systems Inc. (multi-year contract with Fischer Imaging Inc.)
November 1, 1997... Urohealth Systems Inc., Newport Beach, Calif., signed a multi-year agreement with Fischer Imaging Inc., Denver, that gives Urohealth's surgical division co-exclusive rights to distribute Fischer's Mammotest Plus System to the general surgery...

EDAP Technomed Inc. (contract with American MedTech Services Inc.)
November 1, 1997... EDAP Technomed Inc., Burlington, Mass., has chosen Atlanta-based American MedTech Services Inc., to provide nationwide maintenance services for its minimally invasive medical equipment product lines. The strategic alliance, which will be phased...

Bioject Medical Technologies Inc. (joint venture with Elan Corp.)
November 1, 1997... Bioject Medical Technologies Inc., Portland, Ore., and Elan Corp., New York, have established a joint venture for the development and eventual sale of a continuous glucose level monitoring system for diabetics. The ambulatory monitoring system...

Simplex Medical Systems Inc. (plan to acquire Blood Technology Systems Inc.)
November 1, 1997... Simplex Medical Systems Inc., Hallandale, Fla., signed a letter of intent to acquire Blood Technology Systems Inc., Altamonte Springs, Fla., a manufacturer of blood separation devices. Simplex produces medical diagnostic kits, disposable dental...

DuPont Pharma Radiopharmaceuticals. (donations to the Y-Me National Breast Cancer Organization)
November 1, 1997... DuPont Pharma Radiopharmaceuticals, North Billerica, Mass., and Syncor International Corp., a distributor network of radioisotopes, last month began donations of 50 cents to the Y-Me National Breast Cancer Organization for every dose of...

Henley Healthcare Inc. (acquisition of the isokinetic rehabilitation product line from Cybex International Inc.)
November 1, 1997... Henley Healthcare Inc., Sugar Land, Texas, has acquired the isokinetic rehabilitation product line from Cybex International Inc., Medway, Mass. The deal gives Henley Healthcare exclusive worldwide rights to manufacture and sell all isokinetic...

Innovative Medical Services Inc. (plan to acquire Export Company of America Inc.)
November 1, 1997... Innovative Medical Services Inc., El Cajon, Calif., says it will purchase Export Company of America Inc., Fort Lauderdale, Fla., a distributor of medical, dental and veterinary supplies. Export Company, also known as EXCOA, distributes products...

Picker International. (acquisition of Marmer X-Ray)
November 1, 1997... Picker International, Cleveland, has acquired Marmer X-Ray, a Cincinnati-based medical imaging supplier, in a move designed to boost Picker's distribution position. Privately held Marmer is a regional distributor that serves markets in Ohio,...

Acuson Corp. (contract with the Agfa Division of Bayer Corp.)
November 1, 1997... Acuson Corp., Mountain View, Calif., signed an agreement with the Agfa Division of Bayer Corp., Ridgefield Park, N.J, to use the Drystar Dry Image Printer exclusively with Acuson's Sequoia[TM], Aspen[TM] and 128XP[R] demonstration ultrasound...

Vista Medical Distribution Corp. (changed its name to Perigon Medical Distribution Corp.)
November 1, 1997... Vista Medical Distribution Corp., Laguna Hills, Calif., has officially changed its name to Perigon Medical Distribution Corp. In addition, the company also announced the acquisition of LICA Medical Products, Farmingdale, N.Y., a deal that expands...

WasteWorks. (alliance with McFaul and Lyons Inc.)
November 1, 1997... WasteWorks, New York, signed a three-year business alliance with McFaul & Lyons Inc., Trenton, N.J., to provide MLI customers with waste management consulting services. Just days after the announcement of the agreement with WasteWorks, McFaul &...

United States Surgical Corp. (acquisition of the spinal product line of Smith and Nephew Inc.)
November 1, 1997... United States Surgical Corp., Norwalk, Conn., has acquired the spinal product line of Smith & Nephew Inc., Memphis, Tenn. The product line will be marketed by Surgical Dynamics Inc., the U.S. Surgical spine business subsidiary acquired in 1995....

Thermo Electron Corp. (planned acquisition of the Bear Medical Systems division of Allied Healthcare Products Inc.)
November 1, 1997... Thermo Electron Corp., Waltham, Mass., signed an agreement to acquire the Bear Medical Systems division of Allied Healthcare Products Inc., Riverside, Calif., for $37.5 million in cash. Also included in the transaction is Bear Medical's BiCore...

Acquisition of Biosense designed to boost J&J's cardiology offering. (Johnson and Johnson's)
November 1, 1997... Johnson & Johnson's latest acquisition is "an encouraging foray into key high-growth markets," according to industry analysts like New York-based Deutsche Morgan Grenfell. The merger, which is expected to have closed by late October, is with...

HealthSouth casts lot with Purchase Connection.
November 1, 1997... Purchase Connection received a huge lift last month when HealthSouth Corp., the big, Birmingham, Ala.based provider of outpatient surgery and rehabilitative services, chose the Chatsworth, Calif.-based group purchasing affiliate as its exclusive...

Impact of VHA's distribution program spans entire supply chain. (medical supplies industry)
November 1, 1997... VHA is trying to "make an impact on how manufacturers and members behave in the supply chain" by creating incentives included in its authorized distribution agent program. Larry Dooley, vice president of distribution services for the Irving,...

Penske's deal with AmeriNet seeks to drive out supply chain costs. (Penske Logistics Inc.)
November 1, 1997... AmeriNet and Penske Logistics Inc. have signed an agreement aimed at helping integrated delivery networks save costs in medical logistics through what Penske calls "supply chain engineering." The St. Louis-based GPO signed a three-year strategic...

Allegiance only distributor to sign 3Q97 stockless pacts. (medical-surgical supply distributor)
November 1, 1997... In further and compelling indication that stockless distribution program signings have slowed, Allegiance Corp. was the lone medical-surgical supply distributor to add to its total of stockless agreements during the year's third quarter. McGaw...

PPI's finished goods index rises 0.1% in September; Medical Care Commodities index slips 0.1%. (Producer Price Index)
November 1, 1997... [TABULAR DATA OMITTED] Analysis: The unadjusted finished goods component of the Producer Price Index inched 0.1% higher in September to 131.8. This index, which measures pricing at the manufacturer level, is equal to its September 1996...

Purchasing Managers: manufacturing sector growth rate slows further. (Purchasing Managers' Index)
November 1, 1997... The rate of economic activity in the nation's manufacturing sector grew even more slowly in September than in August, according to the most recent report from the National Assn. of Purchasing Management. However, in September, growth in the...

Zimmer Inc. (appointment of J. Raymond Elliott as president of the orthopedics business)
November 1, 1997... J. Raymond Elliott was named president of the orthopedics business for this Warsaw, Ind.-based manufacturer of orthopedics products. Elliott, who joins Zimmer from his previous post as president and CEO of Cybex International Inc., succeeds...

St. Jude Medical Inc. (appointment of Daniel J. Starks as CEO of the Cardiac Rhythm Management Division)
November 1, 1997... Daniel J. Starks was named CEO of the Cardiac Rhythm Management Division for this St. Paul, Minn.-based manufacturer of cardiovascular devices. Starks continues as CEO of the company's Daig division. In addition, James W. Dennis was named...

Epitope Inc. (appointment of Charles E. Bergeron as CFO for the medical products group)
November 1, 1997... Charles E. Bergeron was named CFO for the medical products group of this Beaverton, Ore.-based medical diagnostic products manufacturer. He takes this position in addition to his responsibilities as vice president of operations for the company's...